Investors should take notice of NASDAQ:HALO—it offers a great deal for the fundamentals it presents.

Last update: Apr 16, 2024

HALOZYME THERAPEUTICS INC (NASDAQ:HALO) was identified as a decent value stock by our stock screener. NASDAQ:HALO scores well on profitability, solvency and liquidity. At the same time it seems to be priced very reasonably. We'll explore this a bit deeper below.

Analyzing Valuation Metrics

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:HALO has earned a 9 for valuation:

Based on the Price/Earnings ratio, HALO is valued cheaply inside the industry as 97.78% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HALO to the average of the S&P500 Index (25.05), we can say HALO is valued slightly cheaper.
The Price/Forward Earnings ratio is 10.30, which indicates a very decent valuation of HALO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 98.63% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.53, HALO is valued rather cheaply.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 96.41% of the companies listed in the same industry.
98.29% of the companies in the same industry are more expensive than HALO, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of HALO may justify a higher PE ratio.
A more expensive valuation may be justified as HALO's earnings are expected to grow with 30.48% in the coming years.

What does the Profitability looks like for NASDAQ:HALO

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:HALO scores a 7 out of 10:

HALO has a Return On Assets of 16.25%. This is amongst the best in the industry. HALO outperforms 98.97% of its industry peers.
Looking at the Return On Equity, with a value of 335.99%, HALO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
HALO has a Return On Invested Capital of 17.00%. This is amongst the best in the industry. HALO outperforms 98.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HALO is above the industry average of 13.58%.
HALO's Profit Margin of 33.96% is amongst the best of the industry. HALO outperforms 99.15% of its industry peers.
HALO has a better Operating Margin (41.02%) than 99.32% of its industry peers.
HALO has a better Gross Margin (76.82%) than 86.15% of its industry peers.

Evaluating Health: NASDAQ:HALO

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:HALO has received a 7 out of 10:

An Altman-Z score of 3.43 indicates that HALO is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.43, HALO is doing good in the industry, outperforming 76.75% of the companies in the same industry.
Looking at the Debt to FCF ratio, with a value of 4.02, HALO belongs to the top of the industry, outperforming 95.21% of the companies in the same industry.
HALO has a Current Ratio of 6.64. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
HALO has a Current ratio of 6.64. This is in the better half of the industry: HALO outperforms 66.32% of its industry peers.
A Quick Ratio of 5.50 indicates that HALO has no problem at all paying its short term obligations.

A Closer Look at Growth for NASDAQ:HALO

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:HALO has achieved a 9 out of 10:

HALO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.23%, which is quite impressive.
HALO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.64% yearly.
Looking at the last year, HALO shows a very strong growth in Revenue. The Revenue has grown by 25.59%.
Measured over the past years, HALO shows a very strong growth in Revenue. The Revenue has been growing by 40.42% on average per year.
The Earnings Per Share is expected to grow by 20.73% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.91% on average over the next years. This is quite good.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of HALO

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.